The Ordinance no 9,924/2020, dated April 16th, 2020, rules on the new conditions for the extraordinary transaction program of the overdue federal liabilities, due to the effects of the pandemic caused by COVID-19.

The adhesion to the transaction will take place through the REGULARIZE portal and will involve:

      • the down payment corresponding to 1% (one percent) of the total amount of debts to be transacted, divided into up to 3 (three) equal and successive installments;
      • payment of the remaining debt balance in up to 81 (eighty-one) months, or up to 142 (one hundred and forty-two) months in the case of individual taxpayers, individual entrepreneurs, micro-enterprises, small businesses, educational institutions, charity institutions, cooperative societies and other civil society organizations covered by Law n. 13,019/2014.

The installment cannot be inferior than R$ 100.00 (one hundred reais) when the transaction is allowed in 142 (one hundred and forty-two) months, and R$ 500.00 (five hundred reais) in the other cases. Employee and employer social security contributions can only be paid in up to 57 (fifty-seven) months.

The debts under litigation may also be the subject to the transaction, provided that the debtor proves to have given up the judicial lawsuits, defenses or appeals related to the credits transacted, with a request for the extinction of the respective process with resolution of its merit.

If the taxpayer who intends to adhere to the proposal has any debt with a previous installment plan terminated, the entry will be increased to 2% (two percent) of the consolidated value of the debts object of the transaction.

The deadline for adhesion to the extraordinary transaction will remain open until June 30, 2020.

The teams of Fraga, Bekierman & Cristiano Advogados are available to answer any questions about the legislation mentioned above.